Asian VLCC Rates Jump to Nine-Month High

Worldscale rates for hiring VLCCs to haul crude from the Middle East to Far East Asia hit a nine-month high Tuesday, December 9, Platts writes citing shipping sources.

The record level of hiring rates has been attributed to strong resistance from owners and fall in the availability of tonnage for December loading dates.

Owners were heard seeking w70 or more for the Persian Gulf to Japan route, according to Platts’ sources.

“The key VLCC Persian Gulf-Japan rate was assessed up w8.25 day on day at w68.5 basis 265,000 mt Tuesday. It was last higher January 24, after hitting a year-to-date high of w73 on January 22,” Platts said.

VLCC owners were not expected to accept below w70 after w69 was attained for PTT’s cargo, ship brokers told Platts.

As reported, there were still outstanding VLCC cargoes for December loading dates, including end December PG-East requirements from charterers Day Harvest and Shell.